RCM on Goods And Services

This query is : Resolved

nikhil gupta (Querist)
Follow

16 August 2017 what will be the rate in rcm on goods or services is there uniform rate for goods and services or depend on hsn/sac code ... please guide me

Guest

Guest (Expert)

16 August 2017 It will depend on type of goods or Services availed on which on reverse charge is applicable

Asha Kanta Sharma

Asha Kanta Sharma (Expert)
Follow

20 July 2025 Great question! Here's a clear breakdown about RCM rates on goods and services under GST:

1. RCM (Reverse Charge Mechanism) rates depend on the type of supply:
For Goods:
Generally, RCM is not applicable on goods except in certain cases like tobacco products or notified goods.
When applicable, the RCM rate will depend on the GST rate prescribed for that particular good (based on HSN code).
Usually, the supplier of goods charges GST, so RCM on goods is rare.
For Services:
RCM is more common on services.
The rate of GST under RCM is as per the SAC code and the notified GST rate for that service.
For example:
GTA (Goods Transport Agency) services under RCM attract 5% GST.
Legal services provided by an advocate under RCM attract 18% GST.
Hiring of cab, security services, etc. also attract RCM at applicable GST rates.
2. Uniform Rate or Not?
There is no uniform RCM rate for all goods or services.
The RCM rate depends on the applicable GST rate of the supply, which is based on the HSN (for goods) or SAC (for services) code.
Hence, the RCM rate varies according to the category of goods or services.
Summary:
RCM rate = GST rate applicable on the specific good/service.
Check the GST rate based on HSN (for goods) or SAC (for services).
RCM applies only when notified under GST law.
For many services, common RCM rates are 5%, 12%, 18%, or 28%, depending on the service.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now